China bank lending slows further in October for third straight month

BEIJING (AFP) - Chinese banks lent less money for a second straight month in October, data showed on Monday, as the country's banking regulator acknowledged that bad loans have spiked this year.

The lenders gave out 505.2 billion yuan (S$9.9 billion) last month, the People's Bank of China said in a statement, down from 623.2 billion yuan in September and 703.9 billion yuan in August.

The figure was lower than analysts' expectations of 590 billion yuan, according to a median forecast of 11 economists surveyed by Dow Jones Newswires.

China has been encouraging bank lending to bolster economic growth, which has slowed for seven straight quarters and hit a more than three-year low of 7.4 per cent in the third quarter, hurt by weak demand overseas and at home.